FAQ’s

All you’re questions answered

General FAQs

What is CapitalPitch?

CapitalPitch is a lead investor, investment filter, due diligence expert and capital raising platform for elite startups at the Seed and Series A stage. We help startups become investor ready, lead the investment round via our venture fund and syndicate the round with smart and strategic follow-on investors.

We help investors by being a comprehensive filter, showcasing revenue-generating startups with rigorous and transparent due diligence.

As a result startups raise capital more quickly and effectively, and investors are only presented with amazing curated deals in a format they are looking for.

Who is behind CapitalPitch?

CapitalPitch was founded by serial founders Emlyn Scott and Jeremy Liddle, who both experienced the frustration of capital raising first hand.

CapitalPitch is now backed by an elite group of investors, including some of Australia’s best Family Offices, who believe in CapitalPitch and the united desire to solve the capital raising problem for early stage businesses and investors.

Is CapitalPitch a crowdfunding platform?

No. CapitalPitch is a lead investor first and foremost. We use advanced technology to filter thousands of revenue generating businesses down to a handful of exceptional businesses, which are presented on our equity platform which looks similar to an equity-based crowdfunding platform.

Is CapitalPitch regulated by ASIC?

Yes. CapitalPitch is a business introduction platform for wholesale, sophisticated and professional investors to directly invest in private equity in startup and early stage businesses.

CapitalPitch operates its platform pursuant to the prescriptive requirements of ASIC Class Order 02/273 (Business Introduction or Matching Services), RG 129 and section 708 of the Corporations Act (Cth) 2001. CapitalPitch nor our platform is endorsed or approved by ASIC. You can read our Disclaimer here.

What fees do you charge?

CapitalPitch only charges for our investor readiness work when we choose to invest. If we decide at any time to not invest, there is no fee to pay. We do not charge a percentage of capital that is invested in a business.

CapitalPitch charges businesses AUD 35,000 and 1% equity for our investor readiness services and equity funding.

Does CapitalPitch invest in the startups as well?

Yes, absolutely. We act as the lead investor in every startup that successfully completes our process. We set the price and terms for all other investors. We are also happy to act as the co-lead.

We look to invest half the total round size.

We believe that our 6 step process produces superior startups and we want to invest alongside other investors. This ensures that we are 100% aligned with investors as our returns are dependent on the successful future of each startup.

Is my data private?

CapitalPitch will not share your information with third parties other than to finalise transactions and ensure our website operates efficiently, or where you expressly agree to us doing so.

What is your complaints procedure?

If you are not completely happy with the service we have provided, you can register a complaint online or by phone. We obviously want to do whatever we can to sort the issue. To submit a complaint, please choose from the following options:

How can I request new features?

We love to hear your ideas. Please either email us or use our contact form:
Contact Us Page
Email – tribe@capitalpitch.com

Can I speak to someone at CapitalPitch?

Of course. There are several ways you can communicate with us. However, please do check out the FAQ sections as we find that most of the questions we get asked you can find the answers quickly here, and it also we can progress to more detailed questions more quickly. The best ways to connect with us are:

Why do you have a 6 step process?

We have designed the 6 step process to efficiently and effectively curate a startup from the moment they are thinking of raising capital right through to closing their round. The 6 steps entail a complete start-to-finish capital raising process.

Startups all too often are simply not investor-ready and investors are inundated with deals and the vast majority are subpar. The average VC will only invest in 0.5% of the deals they see and angels around 2.5%.

Startups need to stand out and present themselves properly. Investors want to see better deal flow. We created the 6 step process to solve these problems.

Startup FAQs

What is a Lead Investor?

A lead investor is an investor who is:

  • recognised as an experienced investor and/or experienced in the startup’s field
  • first in the round
  • sets the price and terms
  • puts his “name” to your raise
  • introduces their network to your raise

A lead investor is the first and usually the most recognised investor in a capital raise. They conduct the due diligence and put their name and brand to the capital raise. They set the valuation and the investment terms so other investors can follow. They also often open up their investor network to help the business raise capital. Sometimes the lead investor will receive preferential terms in return for acting as the lead investor.

CapitalPitch acts as a lead investor into every startup that completes the 6 step process and raises through CapitalPitch.

Who can start a pitch?

Any startup that is Seed or Series A looking to raise between AUD 500,000 to AUD 3,000,000 can look to CapitalPitch to get investor-ready and receive investment from investors and from the CapitalPitch Venture Fund.

All startups that are presented to general investors on the platform must have successfully completed CapitalPitch’s 6 step process, including passing the Venture Fund Investment Committee.

How does CapitalPitch work?

CapitalPitch is a powerful filtering and due diligence platform that enables startups to quickly and efficiently get investor ready and raise capital from CapitalPitch and a large network of sophisticated/accredited investors.

Startups follow the 6 step process which is a complete start-to-finish capital raising process. The steps are:

  1. Assessment – foundation assessment day covering the 17 key sections of your business and pitching to investment committee.
  2. Commercials – financials and sales & marketing plan
  3. Data Room – 70 point data room and legals
  4. Due Diligence – in-depth due diligence conducted by Ventures
  5. Lead Investor – Lead (or co-lead) investment from CapitalPitch to agree price and terms
  6. Raise – follow on sophisticated/accredited investors complete your round on our equity finding platform

What type of startups are you looking for?

We look for tech-enabled startups generating revenue, addressing a huge problem and with elite founders who hustle.

We are looking for the following qualities:

  • Raising between $500k and $3m
  • Minimum $10,000 per month revenue
  • High growth rates
  • Tech enabled
  • Highly scalable
  • Experienced and coachable founder(s)
  • Unique USP & defendable IP

We are industry agnostic but we must be able to understand the business and add value. We do not invest in capital intensive, unethical or highly specialised industries.

How long does the process take?

We aim to expedite your capital raise without cutting corners. There is a lot to do. We aim to get startups that we want to progress with a Letter of Intent within 2 to 3 weeks.

The time it takes to complete your investor-readiness depends on your initial readiness level, your experience and your desire to complete everything. Focused startups can complete the investor readiness parts (Steps 1 to 4) in as little as 6-8 weeks. Most startups unfortunately realise they have a lot of work to do to be truly investor ready and take longer.

What type of investors are on CapitalPitch?

CapitalPitch’s platform is restricted to sophisticated/accredited investors only. Retail investors are not permitted to use the platform.

We categorise investors into:

  • Individual Investors – Angels, Advisors, others
  • Organisations – Angel groups, Corporation, Family Offices, Financial Institutions, VCs, Private Equity, Corporate Advisors, others

What is a private Deal Room?

Any investor on CapitalPitch can create their own private Deal Room that only investors in their “network” can view and invest. Deal room owners can invite and approve investors wishing to access their deal room. Pitches may be listed in a private deal room so investors associated with the deal room have exclusive access.

What is an “all or nothing” raise model?

There are two main funding models in the crowdfunding market, “all or nothing” and “keep what you raise”. Both a pretty self-explanatory.

CapitalPitch operates an all or nothing model. The startup sets a target raise amount, say $1m, that they want to raise and they have to hit that amount to close the round. If you don’t reach your target the funds are not collected or are returned if they have already been deposited.

When can I show investors my pitch?

Startups can start showing their pitch to investors the moment they register on our platform and start to build their pitch. Each pitch has a unique URL which you can share with investors, colleagues etc. Your pitch is unpublished at this early stage so only those that you give your URL to will find your pitch.

Investors can request access to your Data Room and Due Diligence sections by clicking the “I’m Interested” button. This button is only visible once we turn it on on your pitch

Once your pitch is “approved” by CapitalPitch it’ll be showcased publicly on our platform and all our investors will be able to find, look at and Register Interest your pitch.

How much capital can I raise on CapitalPitch?

Currently the minimum amount you can raise is AUD500,000 and the maximum is AUD3 million. If you would like to raise above this level please come and talk with us.

Can I raise more than the minimum target?

Yes absolutely. This is called overfunding. You set a minimum and maximum on the platform. You can continue to accept investments until you reach your maximum cap.

How long do I have to raise my target?

We set no defined time on your capital raise. We expect you to raise quite quickly once you are set live as investors know and trust our process and keen to invest.

What happens once my target is reached?

Once your target amount is reached you have the option to close your raise or continue and overfund it to your maximum cap.

Even though a raise may have hit its target on the platform it does not mean that those funds are committed. They are only reserved amounts and commitments still have to be met between the startup, investors and the intermediary lawyers. Investment documents need to be agreed and signed. This means that a certain reserved amount may not convert into a committed investment, and will have to be removed from the reserved amount on the platform.

Do investors have to join CapitalPitch to partake in the raise?

No. We want the pitch recorded on CapitalPitch to be the hub of your capital raise, so we record your investor interest lodged on the platform AND you can record external (direct) investor interest manually onto the platform.

Of course we’d prefer that all investors in a round register on the platform and record their interest that way, but that is not necessary. Within the pitch admin section the startup can record and control external investor interest in the raise.

Can I raise from investors outside Australia?

Yes. While CapitalPitch is restricted to sophisticated/accredited investors only, this is not country specific. Each country has a different set of requirements that determines the status as a sophisticated/accredited investor. Their country of residence (the one in which they pay taxes) determines their investor eligibility.

For example, in Australia Section 708 of the Corporations Act defines a sophisticated investor as having annual income of $250,000 for the last two years or a net worth of at least $2,500,000 in order to invest in early stage companies. For US residents it’s $200,000 and $1 million (not including your primary residence).

When an investor joins CapitalPitch they will be asked to self-certify that they meet the sophisticated/accredited status of their country of residence. This will however only allow them to use the CapitalPitch platform. When they actually invest they will be required to more fully prove their eligibility via the deal lawyers.

Can I update my pitch after launch?

You can edit and update certain parts of your pitch such as your traction, executive summary and data room. In fact, we actively encourage you to keep your traction (milestones, press and key customers) regularly updated. Other more sensitive data like your raise can only be edited by CapitalPitch.

Do transactions and investments actually occur on CapitalPitch?

No. CapitalPitch is a marketing and advertising platform that showcases startup pitches to a growing pool of sophisticated/accredited and professional investors.

The actual transaction of wiring investment money does not occur on CapitalPitch. This occurs offline directly between the investor and the startup, with the help of the lawyers.

Can non-Australian startups raise on CapitalPitch?

Not at this time. We are currently focused on Australian startups but intent to move to international startups in the near future.

What happens if a pitch fails to reach its target?

If your target amount is not reached your pitch will be considered expired “unfunded” as we operate an “all or nothing” model. Alternatively, with the agreement CapitalPitch as your lead investor and other follow-on investors you have received you could close your round having not reached your target.

Does CapitalPitch offer marketing support?

We provide education, strategy and resources to startups to help them with their investor marketing. We also market you to our direct investor database, to our large social media following and via the media in general.

However, while we like to open investor doors for you and spread the word, the responsibility for marketing your raise remains with you and we don’t provide hands on support.

How are the deal terms negotiated?

CapitalPitch has produced best-of-breed fair legal documentation that we expect startups use. As the lead investor will then negotiate and agree the deal terms with you including valuation and follow on investors will accept (or not) these terms.

Will CapitalPitch sign an NDA with me?

Anything you share with us is treated with complete confidentiality. However, we will not sign an NDA for several reasons:

  • Our business is to show you off in an open and transparent manner
  • It wastes our time and money with lawyers
  • We are busy building CapitalPitch and have no interest in copying your business
  • It reflects a distrustful relationship between you and us which is not how we like to operate

If you can’t get past the requirement for an NDA then CapitalPitch unfortunately is not for you, and we wish you well in your capital raising.

Investor FAQs

Which investors can use CapitalPitch?
Is CapitalPitch free for investors?
What are the risks of investing in a startup?
Do I own shares in the business directly or via a fund?
What type of fund do you have?
Why should I invest in startups?
Can I see a pitch before it is “Live”?
Do investors have to join CapitalPitch to invest in the startup?
Does my profile have to public?
Can I speak directly to the startup?
Does self-certification on CapitalPitch mean I have proven my sophisticated status?
Is CapitalPitch’s 6 step process a type of due diligence process?
What is an “all or nothing” raise model?
What sort of businesses are listed on CapitalPitch?
What is overfunding?
How long does a business have to raise its target?
Does overfunding affect the equity being offered?
Does CapitalPitch do due diligence on startups listed on the platform?
Is there a minimum or maximum amount I can invest?
Can I invest in the CapitalPitch fund that invests in every qualifying startup?
What are the advantages of the CapitalPitch fund?
What are networks and deal rooms?
What is a lead investor and can I be one?
Does CapitalPitch collect investor commitments on behalf of the startup?
What happens when I click “I’m Interested” to a pitch?
If I indicate interest in a pitch by the “I’m Interested” button am I committed?
What happens when the target amount is reached?
Can I cancel my investment?
Will CapitalPitch publish my investment amount?
Can I become a Board member or adviser to the startup I invest in?
Can I use my own lawyers?
How will the startup communicate with me after I invest?
When and where is my investment money paid?
Can foreign investors use CapitalPitch?

Which investors can use CapitalPitch?

CapitalPitch is restricted to sophisticated/accredited investors only. Investors from all over the world can invest though each country has a different set of requirements that determines the status as a sophisticated/accredited investor. Your country of residence (the one in which you pay taxes) determines your investor eligibility.

Retail investors are not permitted to use the platform. Investors must be 18 years or over.

All types of investors are welcome on the CapitalPitch platform:

  •  Individual Investors – Angels, Advisors, others
  •  Organisations – Angel groups, Corporation, Family Offices, Financial Institutions, VCs, Private Equity, Corporate Advisors, others

Is CapitalPitch free for investors?

Those that invest in the CapitalPitch fund (Limited Partners/LPs) will be charged fees. Investing via the platform is free for investors. LPs are given preferential access to invest in startups on the platform.

What are the risks of investing in a startup?

Investing in early stage securities is high risk. Investors wishing to invest in this asset class should take the time to understand the risks and have a strategy in place for mitigating those risks. We encourage all investors to have a diversified portfolio via our fund. Before using CapitalPitch, please ensure you read and understand our Disclaimer.

Do I own shares in the business directly or via a fund?

You can do either (or both) via CapitalPitch. We have a fund that offers investors a diversified managed way of investing in our startups. Alternatively, investors can invest directly as well in our startups if they prefer.

If you invest via our fund we will handle everything. If you invest directly you will need to sign legal documents and be issued shares in the business and appear on the share register.

If you invest via the CapitalPitch Venture Fund you will not own shares in the startup directly but via the Fund which owns the shares, together with other Fund investors, on your behalf.

What type of fund do you have?

CapitalPitch has applied to become an early stage venture capital limited partnership (ESVCLP), which is a tax free investment fund. The fund is currently conditionally registered as an early stage venture capital limited partnership and further conditions will need to be met prior to being unconditionally registered.

Why should I invest in startups?

We wrote a blog post that describes 8 reasons why you should consider investing in startups.

You can read it here: What are the 8 reasons you should consider startup investing. It covers the following eight reasons:

  1. High average returns
  2. Potential for outsized returns
  3. Improved portfolio performance via diversification
  4. Tax breaks
  5. Legal insider information
  6. Affect life changing solutions
  7. Job creation
  8. Be involved

Can I see a pitch before it is “Live”?

Once a pitch goes “live” on the platform, it is made public and is available for all investors to see. We offer our fund LPs the first access to all pitches in case they wish to invest directly as well to top up their holdings.

Before the pitch is live, startups can still provide access to selected investors using the unique URL that is generated when a Pitch Deck is created.  Investors can gain access to the pitch deal information at this stage, but will only be able to register their interest in an offer once the pitch is approved by CapitalPitch and made live on the platform.

Once a pitch goes “live”, it is showcased on the platform and available for all investors to find, request access to the data room and register interest in investing.

Do investors have to join CapitalPitch to invest in the startup?

No. We want the pitch recorded on CapitalPitch to be the hub of a startup’s capital raise, so we record investor interest lodged on the platform AND a startup can record external (direct) investor interest manually onto the platform.

Of course we’d prefer that all investors in a round register on the platform and record their interest that way as it’s more transparent, but that’s not necessary. Within the pitch admin section the startup can record and control external investor interest in the raise.

Does my profile have to public?

An investor’s profile can be Public or Private.

A Public profile is visible throughout the platform to other investors and startups.

A Private profile is hidden throughout the platform to other investors and startups and only visible to those with the direct URL.

Can I speak directly to the startup?

Yes of course. We want you to communicate with the startups. We have provided you with the ability to communicate via the platform or contact the startups directly.

Does self-certification on CapitalPitch mean I have proven my sophisticated status?

Only investors that have self-certified can access the deals on CapitalPitch. When you first register, you’re required to self-certify as a sophisticated/accredited investor or professional. You can also verify your status in the Settings section.

However, self-certification does not mean you have fully proven you are a sophisticated/accredited investor. If you invest in a startup you will be required to confirm your status with the intermediary lawyers.

Is CapitalPitch’s 6 step process a type of due diligence process?

Yes, CapitalPitch’s 6 step process is a type of due diligence process. But it’s also so much more than just due diligence.

While we conduct a thorough top to bottom review of a startup via our process, it is also designed to help startups get investor-ready and remove startups that we think will not offer investors the very best investment opportunities.

What is an “all or nothing” raise model?

There are two main funding models in the crowdfunding market, “all or nothing” and “keep what you raise”. Both a pretty self-explanatory.

CapitalPitch operates an all or nothing model. The startup sets a target raise amount, say $1m, that they want to raise and they have to hit that amount to close the round. If you don’t reach your target the funds are not collected or are returned if they have already been deposited.

When a pitch closes it either expires “Funded” having reached its target, or expires “Unfunded” having not reached its target.

What sort of businesses are listed on CapitalPitch?

In general, CapitalPitch is looking for tech-enabled startups generating revenue, addressing a huge problem and with elite founders who hustle.

Startups:

  • Raising between $500k and $3m
  • Minimum $10,000 per month revenue
  • High growth rates
  • Tech enabled
  • Highly scalable
  • Experienced and coachable founder(s)
  • Unique USP & defendable IP

We are industry agnostic but we must be able to understand the business and add value. We do not invest in capital intensive, unethical or highly specialised industries.

What is overfunding?

When a startup reaches its minimum funding target it can choose to continue to accept investments above this minimum target level to its maximum target. This is called overfunding.

The startup can continue to accept investments until they reach their cap. However startups are not required to continue to accept more investment once their target is reached.

How long does a business have to raise its target?

We do not set a specific time frame, but usually the minimum is reached within a week or two from launching live on the platform.

Does overfunding affect the equity being offered?

Yes. When a startup accepts additional funds above their target via overfunding, the additional equity will increase the overall shares on issue and decrease your percentage of the business by the additional amount raised.

Does CapitalPitch do due diligence on startups listed on the platform?

Yes, CapitalPitch’s 6 step process is a type of due diligence process. But it’s also so much more than just due diligence.

While we conduct a thorough top to bottom review of a startup via our process, it is also designed to help startups get investor-ready and remove startups that we think will not offer investors the very best investment opportunities.

Our Venture Fund Investment Committee also thoroughly reviews each startup before they are accepted.

Is there a minimum or maximum amount I can invest?

There is a minimum amount set by the startup on each pitch, which you can see on their pitch financials. This is no maximum limit.

However, even though their is no upper limit we recommend you allocate your startup investment funds across a broad range of startups for diversification to reduce your risk.

Can I invest in the CapitalPitch fund that invests in every qualifying startup?

Yes. The CapitalPitch Fund was created to invest as the lead into every startup that successfully completes their raise on CapitalPitch. It offers an excellent way for investors who are time poor, inexperienced at startup investing and/or want a way to invest in startups in a diversified manner.

What are the advantages of the CapitalPitch fund?

Yes. The CapitalPitch fund offers the following advantages:

  • A way to access CapitalPitch’s deal flow in a simple, effective and diversified manner.
  • Tax free returns for 10 years
  • Priority rights to invest on top of the fund in the round
  • Flow through pre-emptive rights to invest in the next round

The CapitalPitch fund currently invests as the lead investor usually taking approximately 50% of the round size.

What are networks and deal rooms?

Any investor on CapitalPitch can create their own private Deal Room that only investors in their “network” can view and invest. Deal room owners can invite and approve investors wishing to access their deal room. Pitches may be listed in a private deal room so investors associated with the deal room have exclusive access.

What is a lead investor and can I be one?

A lead investor is an investor who is:

  • recognised as an experienced investor and/or experienced in the startup’s field
  • first in the round
  • sets the price and terms
  • puts his/her “name” to the raise
  • introduces their network to the raise

CapitalPitch acts as the startup’s lead investor setting the price and terms for the raise.

Does CapitalPitch collect investor commitments on behalf of the startup?

No. CapitalPitch is a platform that accelerates startup investment by marketing startups to a growing pool of sophisticated/accredited and professional investors.

The actual transaction of wiring investment money does not occur on CapitalPitch. This occurs offline directly between the investor and the startup, with the help of the lawyers.

What happens when I click “I’m Interested” to a pitch?

The “I’m Interested” button signifies to a startup that you are curious and would like to learn more and would like access to their data room and due diligence information.

When you click “I’m Interested” you will be required to enter in an amount you may wish to invest and your phone number so the startup can contact you if they would like. The startup is notified that you’d like access to their data room and due diligence information. Startups can view your profile, contact you and decide whether to grant you access or not.

Startups may require you sign an NDA at this stage.

The more complete your profile the more likely a startup is to grant you access.

If I indicate interest in a pitch by the “I’m Interested” button am I committed?

No, you are not committed. Registering interest notifies the startup that you are seriously interested in investing and that you’d like to communicate and see their data room.

Committing to invest occurs outside the platform bilaterally between the investor and the startup, with the help of the intermediary lawyers.

What happens when the target amount is reached?

When the target amount is reached the startup has the option to close their raise or continue and overfund it up to their cap.

Even though a raise may have hit its target on the platform it does not mean that those funds are committed. They are only reserved amounts and commitments still have to be met between the startup, investors and the intermediary lawyers. Investment documents need to be agreed and signed. This means that certain reserved amount may not convert into a committed investment, and will have to be removed from the reserved amount on the platform.

Can I cancel my investment?

Your reservation via the “I’m Interested” button is non-binding and an indication to the startup that you are seriously considering investing. It is more of a show of interest. The commitment comes later when you sign term sheets. At that time you will also formally prove your sophisticated/accredited status.

Will CapitalPitch publish my investment amount?

No. We never disclose how much money you have invested in a pitch.

We show you how much you have invested in your dashboard, but this is private to each investor.

Can I become a Board member or adviser to the startup I invest in?

Yes, but that is entirely up to you and the startup. One of the reasons we restrict CapitalPitch to sophisticated/accredited investors and professionals is because of the value they can bring beyond just money.

Can I use my own lawyers?

CapitalPitch has intermediary lawyers that produce fair documentation for the startups and investors. They handle the settlement process. However, you are of course free to consult your own lawyers at your own expense.

How will the startup communicate with me after I invest?

Once an investment raise is complete, we expect each startup to keep their investors regularly updated on the performance of the business. We encourage them to produce regular dashboards and written updates, as well as more formal financial updates.

However, CapitalPitch is not responsible for these updates. We, like you, will expect to receive them as we are investors too via CapitalPitch Ventures.

When and where is my investment money paid?

The actual transaction of wiring investment money does not occur on CapitalPitch. This occurs offline directly between the investor and the startup, with the help of the lawyers.

Can foreign investors use CapitalPitch?

Yes. While CapitalPitch is restricted to sophisticated/accredited investors only, each country has a different set of requirements that determines the status as a sophisticated/accredited investor. Your country of residence (the one in which you pay taxes) determines your investor eligibility.

For example, in Australia Section 708 of the Corporations Act defines a sophisticated investor as having annual income of $250,000 for the last two years or a net worth of at least $2,500,000 in order to invest in early stage companies. For US residents, it’s $200,000 and $1 million (not including your primary residence).

When you join CapitalPitch as an investor, you will be asked to self-certify that you meet the sophisticated/accredited status of your country of residence. This will however only allow you to use the CapitalPitch platform. When you actually invest, you will be required to more fully prove your eligibility via the deal lawyers.